Apparently – and so
we must weep – HNWIs trying to buy a modest £2 million property in any one of those
cities are hindered by a range of costs and obstacles.

Apparently too –
and so we must rejoice – London rates joint second with Hong Kong in a Savills survey
of the best cities for HNWIs to buy property. New York comes out slightly on
top.

London levies
£144,000 on a £2m home, including 7% stamp duty, or 15% if HNWIs buy via an
offshore company. HNWIs also get nipped for another £4,000 on Land Registry,
legal and survey costs. Let’s not forget annual Council Tax of between £1,500
and £4,000.

ARPT

We’re not quite
finished either. From this April, HNWIs with a slab of ‘prime central London
resi’ valued at £2m and over, bought wholly or partly via a company, will be
subject to a new Annual Residential Property Tax. For instance, prime Kensington
properties worth £2m-£5m will incur £15,000 ARPT.

‘Prime resi’ homes
in the top band of £20m and over will cost £140,000 per year. Future owners of
the £70m valued Eaton Square property (see yesterday’s post) might end up with this bill. Hey, HNWIs
– guys - best buy with cash.

London's HNWI offer

Rio is cheapest for
HNWIs to buy a £2m property with taxes and costs levied up to £52,000. But
London offers HNWIs lower crime, better schools and, crucially, sustainable property
values.

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London Intelligence

Journalist, writer and Londoner

I hope this blog reveals new angles on London life. I also edit www.londonintelligence.co.uk, a site investigating life in London. I've written for newspapers, magazines and TV (The Independent, BBC, Channel 4, Whizzer & Chips...).
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